Tuesday, January 15, 2008

Why Doesn't the FDCPA Cover "Business Debts"

Congress passed and the president signed the Fair Debt Collection Practices Act (FDCPA) in 1978 (Carter Administration). Congress acted to end the abuses and harassment occurring within the consumer debt collection industry. At that time, there was no perception that abuses and/or harassment was occurring within the business debt collection industry that warranted the enactment of federal legislation. Instead, Congress believed and continues to believe that those who owe business or commercial debts are sophisticated enough to withstand or at least not be as threatened when faced with business debt collection abuse or harassment. Thus, the FDCPA does not protect a person who is alleged to owe a business or commercial debt. A business who believes it is being abused or harassed in the collection of business debt should consult a creditors' rights or debtors' rights corporate attorney.

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